Buffett Bets On BYD

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Shares in pioneering Chinese carmaker BYD Auto skyrocketed on September 29 after it was confirmed that a company controlled by Warren Buffett would pay HKD1.8bn (US$230mn) for a 10% stake. MidAmerican Energy, a holding company of energy assets 87.4% owned by Buffett's Berkshire Hathaway group, will buy 225mn shares in the Shenzhen-based company at a 4.76% discount to the shares' closing price on September 26 of HKD8.4. The deal represents Buffett's first large Chinese investment since Berkshire sold its entire stake in PetroChina in 2007.